Repositorium für die Medienwissenschaft

Ramon Lobato; Julian Thomas Formats and Formalization in Internet Advertising 2019 https://doi.org/10.25969/mediarep/13670

Veröffentlichungsversion / published version Sammelbandbeitrag / collection article

Empfohlene Zitierung / Suggested Citation: Lobato, Ramon; Thomas, Julian: Formats and Formalization in Internet Advertising. In: Marek Jancovic, Axel Volmar, Alexandra Schneider (Hg.): Format Matters. Standards, Practices, and Politics in Media Cultures. Lüneburg: meson press 2019, S. 65–80. DOI: https://doi.org/10.25969/mediarep/13670.

Nutzungsbedingungen: Terms of use: Dieser Text wird unter einer Creative Commons - This document is made available under a creative commons - Namensnennung - Weitergabe unter gleichen Bedingungen 4.0/ Attribution - Share Alike 4.0/ License. For more information see: Lizenz zur Verfügung gestellt. Nähere Auskünfte zu dieser Lizenz https://creativecommons.org/licenses/by-sa/4.0/ finden Sie hier: https://creativecommons.org/licenses/by-sa/4.0/ [3] Formats and Formalization in Internet Advertising

Ramon Lobato and Julian Thomas

Leaderboards,­pushdowns,­skyscrapers,­expandables,­interstitials,­ carousel­ads,­sponsored­search­results,­promoted­tweets,­full-page­ takeovers,­recommendation­widgets—these­are­a­few­of­the­advertising­ formats­that­consumers­are­likely­to­encounter­in­their­everyday­inter- net­use.­Since­the­invention­of­graphical­web­browsers­in­the­early­1990s,­ hundreds­of­ad­formats­have­appeared­and­disappeared­from­the­web,­ from­familiar­banners­and­billboards­to­bespoke­video,­audio,­and­mobile­ formats­for­specific­platforms­like­Snapchat­and­Spotify.­With­the­rapid­ development­of­mobile­media,­ad­formats­designed­for­smartphones­have­ further­proliferated­and­cross-pollinated­with­desktop-specific­formats.­

These­formats­are­of­interest­to­media­scholars­for­several­reasons.­They­ have­introduced­new­and­diverse­aesthetic­forms­into­everyday­digital­ culture;­generated­distinctive­economic­practices,­including­real-time­ bidding­and­complex­“ad-tech”­value­chains;­and,­in­the­case­of­pop-ups­ and­video­ads,­attracted­criticism­for­degrading­users’­online­experience,­ spreading­malware,­wasting­bandwidth,­and­spawning­a­new­ad-blocking­ industry.­Notwithstanding­the­important­work­of­internet­advertising­ scholars­(Turow­2011;­Gehl­2014;­Crain­2013),­and­the­parallel­professional­ literature­on­the­effectiveness­of­particular­ad­formats­(Rejón-Guardia­and­ Martínez-López­2017),­research­in­this­area­remains­somewhat­scarce.­Con- sequently,­the­histories­of ­these­ad­formats,­and­the­complex­distribution­ and­governance­systems­behind­them,­remain­poorly­understood. 66 Format Matters

This­chapter­tells­one­part­of­the­larger­story.­Our­focus­here­is­on­how­ internet­ad­formats­came­to­be­standardized­(to­some­degree­at­least)­and­ what­this­means­for­wider­debates­about­the­institutional­and­technical­ governance­of­media­formats.­For­almost­twenty­years­the­industry’s­key­ lobby­and­standards­group,­the­Interactive­Advertising­Bureau­(IAB),­has­ been­trying­to­“formalize”­(Lobato­and­Thomas­2015)­the­unruly­advertising­ markets­of­the­internet,­to­establish­interoperable­technical­standards,­and­ to­weed­out­aberrant­formats­and­practices—with­only­limited­success.­In­ this­chapter­we­explore­the­reasons­for­this­partial­failure­of­formalization.­ We­argue­that­internet­advertising,­compared­to­older­advertising­formats­ in­print­and­broadcast­media,­is­characterized­by­a­proliferation of formats as well as their instability.­Beyond­the­legitimate­concerns­about­internet­ advertising,­automation,­and­surveillance,­we­suggest­there­is­also­another­ story­to­be­told­here­about­the­limits­of­standardization—its­success­and­ failure—in­a­highly­fragmented,­increasingly­automated,­and­internally­con- flicted­sector­of­the­media­industries.

Internet Advertising Formats

The term format has­a­specific­meaning­within­internet­advertising.­Beyond­ referring­to­the­many­different­kinds­of­advertising­that­appear­online­ (video,­mobile,­text,­in-app,­and­so­on),­format­also­designates­the ­technical­ attributes­that­determine­how­an­ad­appears­and­behaves­to­the­user.­ These­attributes­include­basic­properties­such­as­dimensions­and­ratio,­ as­well­as­more­technical­attributes­such­as­file­type,­file­size,­definition,­ CPU­load,­autoplay­features,­file­requests,­expandability,­and­the­presence­ or­absence­of­close­buttons.­We­may­also­see­a­distinction­between­the­ formats­of­ad­inventory,­the­spaces­publishers­provide­on­websites­or­in­ apps­for­ad­content,­and­the­formats­of­creative,­the­term­used­to­denote­ actual­ad­content.­The­two­are­not­always­the­same.­In­some­cases,­format­ is­also­used­to­refer­to­the­trading­and­distribution­systems­underlying­ specific­ad­types,­such­as­real-time­bidding­and­retargeting.­There­is,­in­ other­words,­a­looseness­in­how­the­term­is­used­both­within­and­beyond­ advertising­industry­practice.

When­studying­internet­ads,­it­is­helpful­to­begin­with­a­distinction­between­ standard­formats­and­custom­formats.­Standard­formats,­such­as­the­bill- board­and­the­leaderboard,­are­the­basic­display­units­of­web­advertising.­ Most­of­these­have­evolved­in­an­ad-hoc­way­over­many­years­of­trial­and­ experimentation­among­publishers.­Witnessing­the­enormous­expansion­ ofd­web­an ­later­mobile­advertising­since­the­1990s­and­the­simultaneous­ Formats and Formalization in Internet Advertising 67 proliferation­of­screen­sizes­and­device­types,­advertising­industry­stake- holders­have­long­recognized­the­need­for­standardization.­

One­of­the­industry­bodies­charged­with­responsibility­for­stand- ardizing­formats­is­the­Interactive­Advertising­Bureau,­which­has­been­ issuing­standards­and­protocols­to­encourage­interoperability­in­internet­ advertising­since­its­founding­in­1996.­Based­in­New­York,­with­43­offices­ around­the­world,­the­IAB­is­the­private­standard-setting­body­for­inter- net­advertising.­Its­funding­comes­from­annual­member­contributions­ paid­by­major­brands,­ad­agencies,­technology­providers,­and­other­ companies­seeking­a­seat­at­the­table­for­regulatory­and­technical­discus- sions­affecting­the­industry.­The­IAB­also­performs­a­dispute-settlement­ function­by­mediating­conflicts­as­they­arise­in­the­industry­and­proposing­ technical­solutions­to­address­industry­problems­(though­IAB­policies,­ which­are­private­in­nature­and­have­no­legal­standing,­are­frequently­ ignored­by­advertisers).­Over­the­last­two­decades,­as­internet­advertising­ has­migrated­from­the­web­to­platforms,­the­IAB­has­been­increasingly­ torn­between­its­core­membership­base—most­of­whom­are­publishers,­ agencies,­and­ad-tech­providers—and­the­new­“duopoly”­of­Google­and­ Facebook­whose­business­models­pose­a­direct­threat­to­many­ of­its­other­ members.­As­such,­the­IAB­is­an­inherently­fragmented­and­conflict-ridden­ organization.

The­IAB’s­key­standards­document­is­the­IAB­Ad­Portfolio,­which­is­pub- lished­annually­and­contains­a­list­of­approved­formats­and­their­technical­ specifications.­The­aim­of­the­portfolio­is­to­minimize­production­costs­ for­advertisers­and­enable­automated­placement­of­their­artwork­across­ millions­of­different­websites,­platforms,­and­apps.­Because­the­ever- increasing­number­of­mobile­devices­and­screen­sizes­poses­a­challenge­for­ any­standardized­portfolio,­the­IAB­has­in­recent­years­moved­away­from­ fixed-size­ads­toward­flexible­size­ad­formats­(22­in­total)­that­can­be­scaled­ up­and­down­as­needed.­These­flexible­size­formats­are­shown­in­table­1.­ Also­included­is­a­selection­of­other­current­and­some­historic­“delisted”­ad­ formats,­which­have­disappeared­from­mainstream­use­but­still­appear­at­ the­margins­of­the­web­(on­casino­and­torrent­sites,­for­example).­ 68 Format Matters

Current IAB flexible display Other common Older display formats formats formats in use delisted by IAB 2x1­horizontal­(Half­page) Paid­search Pop-ups 4x1­horizontal­(Billboard) Recommendation­ Floating­ads 6x1­horizontal­(Smartphone­ widgets Auto-expansion banner) Promoted­listing Hover­or­rollover­ 8x1­horizontal­(Leaderboard) In-game­ads expansion 10x1­horizontal­(Super­ In-banner­video Forced­countdown leaderboard/pushdown) Video­360 Scroll­over­/­scrolling­ 1x2­vertical Push­notifications overlay 1x3­vertical­(Portrait) Lockscreen­ads Flashing­animation 1x4­vertical­(Skyscraper) Audio­in-stream­ads Adhesion­/­sticky­ads 1x1­tiles­(Medium­Rectangle) Chatbots Expand­while­scrolling 2x1­tiles­(Financial) VR­and­AR­ads Underlay­ads Full­page­portrait­(various­ Branded­emojis dimensions) Full­page­landscape­(various­ dimensions) Feature­phone­sizes­(small,­ medium,­large­banner)

[Table­1]­Interactive­advertising­formats.­Sources:­IAB­(2017)­and­Reina­(2017).

Custom­formats­are­the­second­family­of­internet­advertising­formats.­ Unlike­standard­formats,­which­require­a­high­degree­of­technical­uni- formity,­custom­formats­are­owned­and­controlled­by­specific­plat- forms.­For­example,­Twitter’s­signature­ad­format­is­the­Promoted­Tweet;­ Snapchat­is­known­for­its­Lenses­and­Filters­that­overlay­brand­information­ onto­users’­photos;­and­Spotify­offers­Sponsored­Playlists­and­Sponsored­ Sessions.­Custom­formats,­in­other­words,­are­all­about­differentiation­and­ novelty,­rather­than­standardization.­

One­of­the­most­famous­custom­formats­is­Adwords,­Google’s­signature­ ad­product,­which­was­launched ­in­beta­in­2000.­The­Adwords­format­ is­deceptively­simple.­Advertisers­provide­a­few­lines­of­text,­a­target­ URL,­and­the­search­terms­they­want­their­ads­to­appear­alongside­(for­ example,­“toothache”­is­an­attractive­term­for­local­dentists).­Every­time­ a­user­searches­on­Google,­a­real-time­auction­occurs­between­potential­ advertisers­bidding­on­the­designated­keyword(s)­to­determine­whose­ad­ appears­in­the­results.­Where­the­ad­appears­then­depends­also­on­its­ relevance­to­the­search,­calculated­by­Google’s­algorithms.­The­humble­ Adwords­format,­with­its­unfashionable­plain-text­aesthetic­and­its­self- serve,­cost-per-click­model,­has­been­extraordinarily­successful;­it­is­the­ core­of­Google’s­vast­advertising­and­artificial­intelligence­enterprise.­ Formats and Formalization in Internet Advertising 69

While­Google­phased­out­the­Adwords­brand­in­2018,­replacing­it­with­the­ moniker­Google­Ads,­this­was­a­purely­cosmetic­change;­the­underlying­ technology­and­business­processes­of­Adwords­continue­to­generate­most­ of­Google’s­revenues.

Understood­in­these­terms,­the­success­of­Adwords­can­be­seen­as­a­ reaction­to­the­inefficiencies­or­perceived­failures­of­its­rival­formats,­and­ the­banner­format­in­particular.­In­the­context­of­the­tech­crash­of­the­early­ 2000s,­the­banner­was­an­expensive,­intrusive­format.­It­was­the­creation­ of­print­media­publishers­(the­first­banner­ads­appeared­in Wired’s online publication Hotwired circa­1994),­and­it­emulated­the­display­ads­of­print­ media.­As­the­trade­paper­Digiday put­it,­“For­years,­the­banner­ad­was­the­ workhorse­of­digital­advertising,­and­what­a­miserable­nag­it­was:­Banners­ had­diminished­click-through­rates,­stymied­publishers’­web­designers­ and­infuriated­a­generation­of­readers­who­saw­sites­get­more­and­more­ crowded­with­ads”­(Willens­2016).­In­contrast,­the­Adwords­format­was­new,­ inexpensive,­lower-bandwidth,­and­automated.­And­unlike­the­banner,­its­ price­reflected­a­market­operating­in­real­time­and­its­relevance­to­users­ rather­than­a­price­set­by­publishers.­eW­ return­to­the­Adwords­format­ below­in­the­context­of­automation.

Other­titans­of­the­tech­economy­have­their­own­custom­formats.­Amazon,­ an­e-commerce­platform­with­a­lucrative­advertising­and­infrastructure­ business­on­the­side,­sells­a­range­of­custom­formats,­including­landing­ pages­for­brands,­sponsored­search­results,­and­daily­deal­“site­stripes.”­ At­the­same­time,­Amazon­also­sells­display­ads­in­standard­IAB­formats,­ such­as­banners­and­rectangles,­which­appear­in­various­places­as­the­user­ searches­for­products­on­the­Amazon­website­or­app.­The­end­result­is­an­ unusually­dense­commercial­environment­offering­a­wide­array­of­touch­ points.­A­user­shopping­for­jeans,­for­example,­might­see­a­Levi’s­video­ ad,­a­Levi’s­landing­page,­or­Levi’s-sponsored­search­results­at­various­ points­in­their­search.­Each­of­these­formats­is­the­result­of­a­long­process­ of­research­and­development,­as­well­as­careful­calculation­weighing­the­ revenue­potential­against­the­risk­of­user­experience­degradation.

As­these­examples­suggest,­novel,­custom­ad­formats­are­a­key­foundation­ of­the­internet­economy.­More­than­simply­technical­specifications­to­ ensure­interoperability,­formats­are­nexus­points­where­the­media­buying­ side­of­advertising­interacts­ with­the­creative­side;­where­commercial,­ aesthetic­and­technical­logics­intertwine;­and­where­the­dueling­forces­of­ standardization­and­differentiation­enter­into­productive­tension.­ 70 Format Matters

The Political Economy of Ad Formats

Internet­advertising­relies­on­a­constant­churn­of­formats.­Compared­to­ other­areas­of­the­media­industries—such­as­broadcast­and­radio—inter- active­formats­are­highly­unstable.­While­the­30-second­ad­has­been­the­ mainstay­of­television­advertising­since­the­1970s,­many­formats­used­in­ web,­mobile,­and­online­video­advertising­are­barely­a­few­years­old.­In­ other­words,­there­is­enormous­innovation,­and­instability,­in­this­sector­of­ the­media­industries.­

The­long­reign­of­the­30-second­television­commercial­relied­on­the­ extended­postwar­hegemony­of­the­commercial­TV­broadcasting­system.­ Hardware­and­technical­standards­evolved­slowly­and­incrementally,­and­ standard­analog­screen­resolutions­persisted­over­an­extended­period,­ with­a­gradual­transition­to­digital­equivalents­from­the­turn­of­the­century.­ Periodic­user-driven­disruptions—remote­controls,­video­recorders— challenged­ad­formats­and­shaped­industry­responses,­just­as­ad­blockers­ are­now­disrupting­internet­advertising.­But­screen­sizes­and­program­ formats­remained­relatively­stable.

The­contemporary­situation­is­different.­Convergence­has­destabilized­the­ format­system,­as­advertisers,­publishers,­and­platforms­experiment­with­ new­ways­to­command­user­attention.­It­could­be­argued­that­formats­ themselves­are­the­basic­“products”­of­the­internet­advertising­industry,­ even ­though­they­cannot­be­bought­by­a­consumer.­For­platforms­espe- cially,­formats­are­a­point­of­competitive­difference:­the­business­of­running­ a­platform­involves­inventing,­refining,­and­marketing­new­ad­formats­that­ can­reach­audiences­in­effective­ways.­These­formats­can­then­be­priced­as­ premium­ad­products­delivering­effective,­targeted­messaging­that­cannot­ be­replicated­by­other­platforms.

Consider­the­case­of­Facebook,­which­has­developed­dozens­of­custom­ formats­since­its­early­years­as­an­online­college­directory.­Facebook’s­ first­ad­format­was­the­Flyer,­a­vertical­text-and-image­display­box­that­ appeared­on­the­side­of­the­home­screen.­The­Flyer­was­akin­to­a­clas- sified­advertisement­and­was­used­mostly­by­US­college­students­and­local­ businesses­catering­to­those­students.­Later­Facebook­ad­formats­included­ Pages,­Sponsored­Groups,­and­Sponsored­Stories­(fig.­1).­Facebook­has­ full­control­over­these­formats­and­can­therefore­specify­what­constitutes­ appropriate­conduct,­context,­and­disclosure.­This­gives­Facebook­a­clear­ competitive­advantage­over­other­publishers­and­platforms­that­rely­on­ standard­ad­formats.­ Formats and Formalization in Internet Advertising 71

[Figure­1]­Example­of­a­Facebook­Sponsored­Story­ad­(2011).­Image­credit:­Chris­Messina.­ Available­from­Flickr­(CC­license).

The­vital­context­here­was­the­shift­to­mobile­media.­From­around­ 2010­onwards,­the­smartphone­changed­advertising,­and­therefore­ advertising­formats,­in­ways­that­amounted­to­a­bifurcation­of­the­“inter- active”­advertising­world­into­mobile­and­desktop­domains,­each­with­ specific­characteristics,­constraints,­and­dynamics—and­distinct­political­ economies.­Mobile­meant­many­things:­smaller­screens­and­touch-based­ interfaces,­dramatically­refined­locational­services,­and­an­app­economy­ that­began­to­displace­the­central­role­of­the­browser­in­desktop­media­ (Burgess­2012;­Snickars­and­Vonderau­2012).­Mobile­platforms­were­more­ controlled­than­desktop­environments,­especially­in­the­case­of­Apple’s­iOS­ ecosystem.­Users­spent­more­time­connected.­The­smartphone­was­a­per- sonal­device,­designed­with­single­users­in­mind,­in­contrast­to­the­multi- user­affordances­of­desktop­systems.­

All­this­created,­very­rapidly,­whole­new­realms­of­advertising­opportunity­ and,­at­the­same­time,­an­urgent­need­to­reconsider­and­reinvent­formats­ from­the­ground­up.­The­display­ad­formats­that­worked­on­the­desktop­ web­failed­on­the­phone.­“Mobile­[banner]­ads­are­easily­ignored,”­recalled­ one­industry­observer, ­“and­when­they­aren’t,­they’re­accidentally­clicked”­ (Bilton­2014).­Formats­tailor-made­for­smartphones,­however,­were­very­ successful.­Pop­unders­became­pointless;­notifications­emerged.­

Facebook’s­response­was­to­evolve­its­signature­ad­formats­to­align­with­ the­smartphone­user­experience.­“In-feed”­mobile­ads­became­the­new­ gold­standard­because­they­were­integrated­into­the­flow­of­the­news­ feed­and­therefore­difficult­to­avoid.­The­Sponsored­Stories­format,­which­ effectively­broadcast­a­user’s­Likes­to­all­their­friends,­was­particularly­ 72 Format Matters

important:­it­revealed­the­extraordinary­potential­of­in-feed­formats,­and­ the­problems­they­raised.­The­format­was­phased­out­in­2014,­partly­as­a­ result­of­privacy­concerns­and­a­related­US$20­million­class­action­lawsuit.

Facebook­has­also­trialed­a­number­of­video­ad­formats­over­the­years,­ including­short­GIFs,­cinemagraphs,­and­video­takeover­ads,­all­designed­ for­in-feed­viewing.­Clearly,­Facebook’s­success­has­been­premised­on­the­ continual­invention­of­new­advertising­formats­that­integrate­paid­ads­ into­the­stream­of­user-to-user­communications­as­discreetly­(some­would­ say­deceptively)­as­possible.­A­further­advantage­of­Facebook’s­custom­ formats­is­that­they­are­somewhat­more­difficult­for­adblockers­to­detect.­ Since­2016,­Facebook­has­been­claiming­it­can­outsmart­desktop­adblockers­ because­of­the­way­it­embeds­its­ads­in­the­platform,­although­Adblock­Plus­ developers­have­also­invented­new­workarounds­in­response­(Bosworth­ 2016;­Tan­2017).­The­end­result­is­the­familiar­“whack-a-mole­game­of­con- stantly­creating­ad­formats­to­block­the­blockers,­only­to­have­them­figure­ out­a­work-around”­(Innovation­Media­2017).­So,­while­no­format­is­totally­ impervious­to­adblocking,­custom­formats­may­be­harder­to­block­because­ of­their­deep­integration­into ­the­platform.­

As­these­examples­suggest,­the­political­economy­of­formats­helps­us­to­ understand­why­and­how­the­internet­advertising­economy­has­evolved­in­ recent­years­into­a­“duopoly”­of­Facebook­and­Google,­the­two­companies­ that­now­command­the­vast­majority­of­new­advertising­expenditure­ and­whose­domination­of­advertising­and­media­is­so­bitterly­contested.­ Control­over­formats­was­a­precondition­for­this­massive­concentration­of­ industry­power.

Format Governance

The­story­of­Google­and­Facebook,­and­their­mastery­of­custom­ad­formats,­ reminds­us­of­what­is­at­stake­here­commercially.­Both­companies­have­ invested­enormous­resources­in­standardizing,­scaling,­and­automating­ their­advertising­infrastructure.­They­now­offer­end-to-end­advertising­ solutions­in­which­all­elements­of­the­transaction­are­controlled­and­ monitored­in-platform.­However,­the­situation­is­different­in­advertising­ supply­chains­that­rely­on­standard­display­ad­formats,­such­as­those­ shown­on­most­websites­and­in­apps.­These­supply­chains­remain­highly­ complex,­volatile,­and­conflicted.­In­the­display­advertising­ecology,­the­ process­of­standardization­has­been­only­partially­successful. Formats and Formalization in Internet Advertising 73

These­tensions­can­be­seen­plainly­in­the­history­of­the­IAB,­the­indus- try’s­reluctant­and­ineffectual­watchdog.­As­explained­earlier,­the­IAB­ was­founded­in­1996­to­lend­some­order­to­an­increasingly­disorganized­ industry.­Many­readers­will­recall­that­the­mid­1990s­were­the­rough-and- ready­years­of­banner­advertising,­when­banners­were­proliferating­across­ the­web­in­a­wide­range­of­sizes,­shapes,­and­color­schemes.­By­1996,­ there­were­an­estimated­250­different­banner­sizes­in­use­(Collins­1996).­As­ Robert­Gehl­(2014)­notes,­

Websites­varied­wildly;­even­with­the­standards-setting­body­the­ W3C,­the­“browser­wars”­between­Microsoft’s­Internet­Explorer­and­ Netscape’s­Navigator,­coupled­with­the­inevitable­growing­pains­of­ any­new­medium,­meant­that­users­confronted­a­sometimes­bizarre­ mediascape­of­sites­“under­construction,”­dead­links,­and­pop-up­ads.­ A­common­metaphor­of­the­1990s­was­that­the­World­Wide­Web­was­ the­“Wild­Wild­West.”­In­this­space,­interaction­was­as­open-ended­as­ many­other­human­activities;­uncertainty,­surprise,­and­anxiety­were­ the­order­of­the­day.­(99)

The­IAB’s­first­mission­was­to­dramatically­reduce­the­number­of­banner­ ad­sizes­from­250­down­to­eight.­The­organization­issued­a­“Proposal­for­ Voluntary­Model­Banner­Sizes”­(IAB­1996)­in­December­1996­which­defined­ specs­for­the­eight­most­common­web­advertising­banners.­These­became­ the­standard­IAB­units,­which­publishers­and­advertisers­were­encouraged­ to­adopt.­In­later­years,­the­IAB­would­extend­its­standardization­agenda­ to­include­video­ads,­mobile­ads,­and­other­issues­like­privacy­and­tracking­ (table­2).­It­would­also­change­its­name­to­the­Interactive­Advertising­ Bureau­to­indicate­its­newly­enlarged­focus. 74 Format Matters

1996:­­ Founded­as­Internet­Advertising­Bureau;­sets­banner­size­standards 1997:­­ Establishes­first­international­chapters 1998:­­ Issues­Online­Audience­Measurement­Guidelines;­defines­the­ad­ “impression” 2000:­­Issues­IAB­Privacy­Guidelines 2002:­­ Issues­Universal­Ad­Package­Guidelines 2004:­­Issues­Pop-Up/Under­Guidelines 2007:­­Opens­IAB­Public­Policy­Office 2008:­­Issues­video­ad­guidelines­and­standards 2011:­­ Releases­Mobile­Rich­Media­Ad­Interface­Definitions­(MRAID)­and­Guiding­ Principles­of­Digital­Measurement 2012:­­ Develops­video­ad­protocols 2013:­­ Develops­video­standards 2016:­­ Develops­LEAN­(lightweight,­encrypted,­AdChoice-supported,­noninvasive)­ principles;­phases­out­set­ad­sizes­in­favor­of­ratios;­delists­the­pop-up

[Table­2]­Interactive­Advertising­Bureau­key­milestones

The­IAB­standards­process­formed­the­basis­for­a­wider­rationalization­of­ internet­advertising­(Gehl­2014,­100).­The­clean-up­operation­enabled­the­ growth­of­ad­networks,­which­emerged­around­1997­and­whose­primary­ function­was­to­sell­banner­advertising­across­multiple­sites­(which­was­ only­feasible­at­scale­for­websites­that­adopted­IAB­standard­sizes).­IAB­ standards­were­thus­integral­to­the­automation­of­adverting­generally­and­ the­advertising­architectures­that­would­emerge­in­the­social­media­plat- forms­of­the­2000s.­In­effect,­as­Gehl­(2014)­suggests,­the­IAB­“produced­ the­standards­necessary­for­effective­social­media­surveillance”­(94).­This­ process­of­ size­standardization­was­relatively­uncontroversial­and­there- fore­relatively­effective­in­its­stated­objective.­A­diverse­and­unruly­set­of­ formats­and­commercial­practices­was­rationalized­into­something­more­ uniform.­However,­other­IAB­campaigns­have­been­notably­less­effective,­ especially­those­related­to­usability­and­privacy.­

As­an­example,­consider­the­IAB’s­largely­ineffectual­campaign­against­pop- up­ads.­The­pop-up—an­ad­that­suddenly­appears­as­a­new­window­either­ in­front­of­the­user’s­browser,­or­even­behind­it­(the­pop-under)—began­to­ rival­the­banner­as­the­internet’s­default­ad­format­during­the­late­1990s.­ Initially­appearing­on­sites­like­Tripod.com,­pop-ups­were­awful­for­the­user­ experience.­Over­time,­key­stakeholders­in­the­industry­began­to­wonder­ whether­pop-ups­might­be­damaging­the­reputation­and­integrity­of­inter- net­advertising­as­a­whole.­The­IAB—whose­members­were­often­reliant­ on­revenue­from­pop-ups—took­a­long­time­to­come­around­to­this­way­ of­thinking.­While­it­issued­a­2004­pop-up­guidelines­document­requiring­ Formats and Formalization in Internet Advertising 75 advertisers­to­include­close­buttons­and­frequency­caps,­it­wasn’t­until­2016­ that­the­IAB­finally­“delisted”­the­pop-up,­removing­it­from­its­Portfolio­of­ approved­ad­formats.­By­this­time,­users­had­taken­matters­into­their­own­ hands­by­installing­adblockers.­The­major­browsers—Firefox,­Chrome,­ Internet­Explorer,­Opera,­Safari—had­also­introduced­pop-up­blocker­ functions.­

[Figure­2]­The­dreaded­pop-up­ad.­Image­by­Random­Literature­Council.­Available­from­ Flickr­(CC­license).­

The­IAB­is­now­starting­to­govern­bad­formats­more­proactively.­In­recent­ years,­it­has­issued­guidelines­restricting­the­use­of­forced­countdown­ads,­ non-closable­interstitials,­and­the­older-style­flashing­ads.­It­is­also­devel- oping­guidelines­and­standards­of­practice­on­other­contentious­issues,­ such­as­autoplay­video,­data­allowance,­battery­use,­and­tracking­script­ within­ad­code­and­cookies.­Through­these­processes,­the­format­is­called­ upon­to­perform­a­kind­of­technical­governance:­IAB­standards­aspire­to­ formalize­a­chaotic­and­opaque­industry­by­specifying­acceptable­and­ unacceptable­practices;­to­smooth­out­the­industry’s­rough­edges;­and,­in­ general,­to­professionalize­what­is­still­a­fragmented­and­conflicted­sector­ of­the­media­industries­that­has­had­relatively­little­regard­for­usability,­ transparency,­or­privacy.­

Formats in the Age of Automation

Advertising­has­long­been­at­the­forefront­of­automation­in­the­media­ industries,­and­ad­formats­have­played­a­central­role­in­the­automation­ process.­We­have­already­seen­how­Google­combined­an­automated­ auction­with­a­relevance­algorithm­to­determine­the­purchase­and­ placement­of­Adwords­in­the­early­2000s.­Clearly,­the­simple,­text-based­ Adwords ­format­facilitated­the­development­of­Google’s­system,­and­its­ commercial­success.­Adwords­was­framed­as­advertising­“for­the­rest­of­ 76 Format Matters

us,”­to­borrow­the­rhetoric­of­an­earlier­era­of­personal­computing.­It­was­ designed­for­a­burgeoning­and­diverse­web,­with­the­promise­of­expanding­ markets­and­latent­commercial­opportunity.­In­its­early­phase,­the­service­ was­marketed­with­a­question­and­invitation­that­underlined­the­system’s­ speed­and­ease­of­use:­“Have­a­credit­card­and­5­minutes?­Get­your­ad­on­ Google­today”­(Levy­2011,­86).

The­Adwords­format­took­on­the­stripped-back,­minimal­aesthetic­of­ Google’s­overall­search­design,­setting­ads­alongside­“organic”­search­ results­in­a­way­that­offered­some­differentiation­from­them—in­order­to­ meet­Google’s­legal­and­consumer­obligations—while­giving­them­consis- tency­with­the­“house­style”­of­Google’s­website.­The­question­of­whether­ the­format­enabled­consumers­to­distinguish­clearly­between­the­ads­and­ actual­search­results­remains­contentious­(Daly­and­Scardamaglia­2017).­ Like­Facebook­Stories­or­Twitter’s­promoted­tweets,­the­potential­value­ of­the­custom­ad­format­lies­at­least­in­part­in­the­implication­that­this­ particular­content­has­been­produced­under­the­auspices­of­a­trusted­ service­(a­search­engine,­social­network,­or­micro-blog).­In­any­case,­the­ stability­and­simplicity­of­the­Adwords­format­seems­to­have­provided­a­ form­of­assurance­for­both­would-be­advertisers­and­consumers­while­at­ the­same­time­simplifying­the­integration­of­ads­into­Google’s­websites.­ A­simple,­standardized­format,­made­possible­by­complex,­large-scale­ automation,­served­aesthetic,­technical,­and­commercial­purposes.­

Real-time­bidding­and­automated­placement­did­not­emerge­in­the­wider­ advertising­market­for­display­ads­until­around­2010,­heralding­the­era­of­ “programmatic­advertising,”­a­general­term­for­the­large-scale­automation­ of­buying­and­selling­advertising.­A­diverse­array­of­new­intermediaries­ appeared­to­manage­the­complex­interactions­between­the­suppliers­of­ advertising­inventory­and­the­market­of­media­buyers:­some­in­competition­ with­each­other,­some­playing­complementary­roles,­and­some­controlled­ by­large­tech­platforms­or­advertising­conglomerates.­Ad­exchanges,­ supply-side­and­demand-side­platforms­(SSPs,­DSPs),­and­data­man- agement­platforms­(DMPs)­emerged­to­coordinate­and­control­transactions­ in­what­was­a­rapidly­growing­market,­with­the­spectacular­growth­of­ mobile­media,­the­appearance­of­in-app­advertising,­and­a­strong­trend­ toward­video.­A­precondition­of­this­new­ecosystem,­as­noted­above,­ was­the­standardization­and­modernization­of­formats,­a­process­heavily­ promoted­by­the­IAB,­without­which­automated­buying­and­selling­would­ not­be­possible.­In­this ­system,­ad­formats­comprise­one­of­a­range­of­“ad­ slot­parameters”­involved­in­automated­market­calculations,­alongside­geo- graphic,­demographic,­system,­and­user­information.­ Formats and Formalization in Internet Advertising 77

If­the­automation­of­advertising­has­driven­the­standardization­of­formats,­ the­currency­of­algorithmically­valued­impressions­has­also­enabled­new­ forms­of­malpractice.­Many­forms­of­ad­fraud­become­possible­in­a­system­ involving­an­array­of­different­parties,­and­the­format­and­placement­of­ ads­is­also­subject­to­misrepresentation.­Two­techniques­are­notable:­ “pixel­stuffing”­involves­resizing­paid­ads­to­1x1­pixel­size,­rendering­them­ effectively­invisible­on­the­page,­while­“ad­stacking,”­another­technique,­ involves­the­vertical­stacking­of­large­numbers­of­ads­of­the­same­format,­ so­that­only­the­top­few­may­be­visible.­There­are­now­so­many­inter- mediaries­involved­in­programmatic­ad­placements­that­it­is­often­difficult­ to­pinpoint­the­source­of­the­fraud.­These­deceptive­practices,­and­the­ wider­problem­of­opacity­and­revenue­leakage­within­ad-tech,­are­major­ challenges­for­publishers.­For­example,­The Guardian’s­Chief­Digital­Officer­ Hamish­Nicklin has­stated­that­up­to­70­percent­of­the­revenue­generated­ from­ad­placements­on­The Guardian’s­websites­is­siphoned­off­to­ad-tech­ intermediaries.

The­problems­of­ad­fraud­and­revenue­leakage­underline­the­degree­to­ which­questions­of­ad­formats­are­also­questions­of­control,­governance,­ and­power ­across­the­industry.­Students­of­media­history­are­familiar­with­ debates­about­“format­wars,”­such­as­Beta­vs.­VHS,­which­emphasize­the­ heady­and­contingent­mix­of­technological­change,­capital­investment,­ first-mover­advantage,­and­intellectual­property­control­that­tend­to­decide­ such­wars.­There­is­also­a­rich­literature­in­the­history­of­science­and­ technology­that­emphasizes­the­social­as­well­as­technical­factors­that­have­ determined­the­outcome­of­many­other­standard­and­format­wars,­from­ railway­gauges­to­electrification­(Hughes­1983).­Invariably,­these­are­stories­ of­power,­politics,­and­money.­There­is­no­virtuous­victory­for­the­best­idea,­ the­best­invention.­Out­of­this­process,­new­formats­and­standards­and­ codes­emerge­as­phenomena­that­“take­on­a­sheen­of­ontology­when­they­ are­more­precisely­the­product­of­contingency”­(Sterne­2012,­298).­

These­histories­reveal­the­difficulty­of­building­and­maintaining­con- sensus­around­formats­in­any­large­industry.­Consensus­is­especially­ challenging­in­internet­advertising­because­the­supply­chain­has­so­many­ participants­with­wildly­divergent­incentives.­Publishers­want­to­increase­ their­ad­revenue,­platforms­want­to­build­and­monetize­a­user­base,­ad­ exchanges­and­middle-men­want­to­optimize­auction­bids­and­take­a­t cu ­ along­the­way,­third-party­ad-tech­suppliers­offer­proprietary­tweaks­to­ the­auction­formula,­data­management­platforms­sell­user­data­overlays­ (often­unethically­obtained)­to­improve­ad­targeting,­ad­networks­aim­to­ build­the­largest­possible­inventory­base,­and­so­on.­Together­with­that­ 78 Format Matters

systemic­complexity,­there­is­also­ongoing­change­in­the­composition­and­ interests­of­the­key­actors.­Publishers,­for­example,­range­from­legacy­ media­businesses­with­print­or­broadcast­markets­to­entirely­web-based­ media­firms­and­app­creators­for­smartphones­or­tablets,­all­with­different­ problems­and­competitive­pressures.

This­gives­some­sense­of­how­difficult­it­is­to­govern­such­a­complex­ system.­While­the­size­and­shape­of­ads­can,­and­has­been,­standardized,­ it­is­much­harder­to­police­other­transgressions­like­the­use­of­invasive­ tracking­scripts­in­ad­code­that­slow­down­page­load­times.­Advertisers­ get­away­with­this­because­most­users­do­not­realize­that­the­ads­are­ causing­the­delay,­or­latency;­nor­do­users­understand­that­the­ad­script­ may­be­draining­their­phone­batteries­and­causing­sluggish­phone­per- formance.­This­provides­an­alibi­for­poorly­designed­ad­creative­because­ the­advertiser’s­incentives­to­reduce­ad­file­size­are­not­in­place.­In­this­ context,­the­“end-to-end”­offering­of­the­platforms­starts­to­look­appealing­ to­advertisers­as­well­as­to­consumers,­who­despair­of­the­inefficiency,­ opacity,­and­poor­user­experience­inherent­in­web­advertising.­In­other­ words,­the­chaos ­of­web-based­display­advertising­and­its­apparent­impos- sibility­of­formalization­is­contributing­to­what­many­in­the­industry—pub- lishers especially—see as a greater threat: the further empowerment of Google­and­Facebook­at­the­expense­of­the­open­web­business­model­ (Hern­2018;­Orlowski­2018).­

The­main­effect­of­the­technical­and­formal­transformations­described­ here—both­industrial­and­cultural—has­been­to­open­huge­new­advertising­ markets­over­a­short­historical­period.­These­new­markets­have­stimulated­ the­growth­of­extraordinarily­powerful­advertising­platforms,­resulting­in­ a­degree­of­consolidation­with­few­precedents­in­the­pre-internet­media­ environment.­In­the­case­of­advertising,­however,­standardization­of­ ad­sizes­has­created­chaos­as­well­as­concentration.­Standardized­and­ automated­ads­feed­not­only­are­the­titans­of­the­internet­but­also­create­ spaces­for­its­demimonde:­the­bots,­spammers,­scammers,­and­skimmers­ who­evolve­and­adapt­fastest­in­a­huge­and­complex­ecosystem.­When­it­ comes­to­formats,­their­expertise­continues­to­match­that­of­the­largest­ media­companies­on­the­planet.­

Acknowledgements Many­thanks­to­Sam­Kininmonth­for­research­assistance,­and­to­Nic­Carah­for­expert­ advice. Formats and Formalization in Internet Advertising 79

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